Short gas price reprieve
Kirk Penton - Feb 15, 2019 - Biz Releases

Photo: Contributed

It looked on Thursday like gas prices were going to skyrocket in the Okanagan.

A handful of Kelowna and Vernon stations jumped from 118.9 to 127.9 cents for a litre of unleaded gasoline, and usually when that happens the rest follow suit.

“It’s retailers trying to increase their retail margins,” Gasbuddy.com’s Dan McTeague said Friday. “In other words, they all pretty much pay the same for gasoline from their supplier, but they also want to add a bit of a buffer, if you will, so they can pay for the cost of operation of their stations as well as things we don’t often consider: honouring credit cards, loyalty programs, etcetera.”

On Friday, however, most of the stations that had implemented the nine-cent increase reverted back to 118.9.

That was the good news for motorists. The bad news is you’re likely going to see 127.9 cents per litre across the Okanagan before the end of the weekend.

Stations are being charged 113 to 114 cents a litre for their gas, but McTeague said a three-cent increase is imminent. Therefore, stations won’t be able to sell for 118.9.

“If I’m selling it for a buck-eighteen it’s a very skinny margin,” McTeague said. “That’s why they raised it to 127.9. That’s a little on the high side, but it’s probably reflecting the fact that there is a three-cent wholesale price increase.

“It’s just not going to hold. You’re definitely likely to see that 127.9 between now and Monday.”


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